Alibaba’s logistics division, Cainiao Network Technology, plans to raise up to $2 billion in an IPO on the Hong Kong stock exchange. informs Reuters, citing the source.
The publication noted that the first reports that Cainiao Network Technology would list the shares on the Hong Kong stock exchange appeared in March. Then, technology giant Alibaba announced that it would divide its business into six segments. At the same time, business groups will be able to participate in independent fundraising activities and conduct their own public offerings.
According to the publication, Cainiao is one of the world’s largest platforms in logistics and information technology. It provides customers with software and data about warehouses, carriers and logistics companies. The company’s profit for the April-December 2022 period was $6.07 billion, up 22% from the same period of the previous year.
The authors of the article pointed out that Alibaba did not disclose potential listing sites for other divisions. However, Hong Kong is the preferred location for listing units, as it is closest to the domestic market.
At the end of March, the Hong Kong edition of the South China Morning Post WroteAlibaba will be split into six independent entities to speed up the decision-making process. In a letter to employees, company management said that six organizations will include a cloud intelligence development group and five divisions: Taobao e-commerce – Tmall, Cainiao logistics operations, field services, global e-commerce and digital media and entertainment.